Trump Considers Blanket Tariff of Up to 20% on Unnotified Trade Partners
In a bold move that could reshape global trade dynamics, U.S. President Donald Trump announced he is considering a flat 15% to 20% tariff on imports from countries that haven't yet received specific notifications from the U.S. government. The proposal, which could take effect starting August 1, is part of a broader push to extract more favorable trade deals for the United States.
The announcement follows a recent wave of letters that the U.S. has reportedly sent to over 20 countries, outlining new tariff plans. These letters detail a range of duty hikes, some as high as 50% — with Brazil facing one of the steepest rates. The communications make it clear that if these countries retaliate by increasing their own tariffs, the United States will respond with even higher tariffs in return.
When asked what will happen to countries not on the initial list, President Trump suggested that a general tariff rate of 15% or 20% would likely apply. “We’re just going to say all of the remaining countries are going to pay, whether it’s 20% or 15%,” he said. “We’ll work that out now.” His comments signal an intent to apply pressure on trading partners who have so far remained outside the scope of direct negotiation or official notification.
The blanket tariff proposal builds on Trump’s earlier “Liberation Day” trade policy, first unveiled in April. That plan included a 10% universal tariff on nearly all imports, along with elevated country-specific rates for select nations that the administration believed had unfair trade practices. Though the tariffs were originally set to go into effect on July 9, the implementation has been delayed until August 1 to allow for ongoing trade discussions.
It remains unclear whether this new 15–20% flat rate will be an increase over the existing 10% baseline or simply apply to those countries not already facing higher rates. What is clear, however, is that the administration is looking to tighten its grip on trade terms across the board.
Canada has been one of the most prominently affected countries in the current round of trade threats. Trump has floated a 35% tariff on Canadian goods, up from the current 25%. While this has thrown a wrench into the ongoing trade talks between the two close allies, some products — particularly those that comply with the United States-Mexico-Canada Agreement (USMCA) — are expected to be exempt from these hikes. Additionally, Canadian energy exports might face a more lenient tariff rate, though the final decision is still pending.
The U.S., Canada, and Mexico have been scrambling to finalize a workable update to the USMCA before a self-imposed July 21 deadline. However, Trump’s newest tariff proposal may alter the timeline significantly, making the road to consensus even more uncertain.
Both Canada and Mexico are reportedly seeking ways to address Trump’s concerns and prevent a full-scale trade disruption. For many observers, the administration’s hardline stance appears aimed at either forcing quick trade concessions or creating a new trade order entirely — one where the U.S. controls the rules of engagement more tightly.
While the White House maintains that these tariffs are essential to restoring balance in international trade, critics argue that such sweeping measures risk triggering trade wars, disrupting supply chains, and harming both U.S. consumers and businesses.
Whether the President’s tariff threats result in new deals or escalate tensions, one thing is certain: August 1 is shaping up to be a key date in global trade — and much of the world will be watching.
No comments:
Post a Comment